In this age of technology, the distances have become insignificant, and it has become less and less essential for a company to have all its employees under one rooftop. Many alternatives help in cutting various costs while ensuring the same level and quality of work. These options include offshore and nearshore outsourcing.
Nearshore outsourcing is the exercise of getting work done or services accomplished by people in bordering countries rather than the people in your own country. The practice is quite typical in IT sector and offers better control over work in terms of the culture, same or similar language, currency, and time zones. Many companies in the world practice this system. For example, several companies in the United States, outsource work to Canada, Mexico, and other Latin American countries.
Benefits Of A Nearshore Outsourcing Company
There are various reasons for nearshore outsourcing. Let’s dig into some of them.
Costs Saving
A significant reason why companies decide to nearshore some of their work is cost saving. Nearshore outsourcing enables it by transferring work to another country where workers are generally paid lower wages due to the currency rate difference.
Compensation For Resources
One of the main benefits of nearshoring is the opportunity to find and utilize the required resources that are not available, expensive, or cannot be handled in-house. Nearshore outsourcing also helps in cutting time and produce faster results.
Improved Company Performance
Nearshore outsourcing is becoming more and more common as it ensures better reach for a company apart from the budget saving aspect. Due to the geographical proximity, cultural and language similarity, a nearshore outsourcing company experience opportunity to expand its reach, offer its services and brand recognition in other regions as well.
Compensation Of Staff Shortages And Improved Company Efficiency
Nearshore outsourcing company are the best option to boost your team if you are facing staff shortage. It is because the workers from those companies are used to the project-based work and flexible enough to plunge in a new project with the required quality standards.
You can also delegate different parts to a nearshore company and reorganize your resources and core team for key tasks accordingly. The hired teams will work as sub- teams of your big project and will add flexibility to your work process.
Requirements Of A Nearshore Outsourcing Company
Nearshore outsourcing allows a company to have a close dedicated team which will ensure more control over the project development flow, faster operationalization of tasks, better engagement with the team and less possible problem points due to more rapid reaction time. However, below are the characteristics you need to keep in mind when opting for nearshore outsourcing.
• Fewer/ no time zone differences
• Geographical proximity
• Cultural and language similarities
• Currency exchange rate
However, to experience maximum benefits from nearshoring, you will need to pay extra attention to the quality and continuously check if everything goes right with the project as successful nearshore outsourcing requires a lot of ongoing communication between the internal team and the nearshore team you are working with.
